G.R. No. 140942 - BENIGNO M. SALVADOR, VS. JORGE Z. ORTOLL.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, the decision of the court a quo is REVERSED and the MTC decision is REINSTITUTED with MODIFICATION that the private respondent shall pay to the petitioner, as plaintiff in the case the amount of P500,000.00 liquidated damages pursuant to the agreement between them." [6] Petitioner Salvador appealed to the Supreme Court. [7] During the pendency of the appeal, petitioner Salvador initiated a new complaint with the Regional Trial Court, Branch 163, Pasig City [8] for specific performance and damages and prayed for the enforcement of the option to purchase agreement then pending with the Supreme Court. To put an end to the case pending before the trial court, petitioner Salvador and respondent Ortoll entered into a compromise agreement, which the Regional Trial Court approved on June 28, 1996. [9] The pertinent provisions of the agreement provided that: "1. Both parties have agreed to settle the case amicably with the plaintiff buying the Alexandra Unit E-251 of defendant for ELEVEN MILLION THREE HUNDRED THOUSAND PESOS (P11,300,000.00), under the following terms and conditions: "A. TERMS OF PAYMENT "A. 1. 50% or P5,650,000.00 payable on or before the 90 th day from execution of this compromise agreement; and, the balance of: "A. 2. 50% or P5,650,000.00 payable on or before the 30 th day from due date of the first payment; "A. 3. The total consideration of P11.3 Million shall be covered by two (2) separate post dated checks. "A. 4. Jorge Z. Ortoll, to deliver CCT No. PT-7461 to Plaintiff upon encashment of second check covering the full payment together with the real estate taxes payment for 1996. "B. OTHER TERMS AND CONDITIONS: "B.1. The above consideration of P11.3 million shall be net CASH to defendant. Plaintiff have agreed to pay the EVAT, withholding tax, documentary stamps to be affixed to the Deed of Sale, transfer tax, registration expenses and all other incidental expenses to transfer title of subject property in the name of the buyer. "B.2. As a further consideration of the compromise agreement, both parties have agreed to file a Joint Motion to Withdraw the Petition for Review docketed as G. R. No. 122164 (CA-G. R. SP No. 36531) now pending before the Supreme Court (Second Division) covering the same property subject matter of the above captioned complaint. "B.3. Finally, both parties have agreed to waive any and all causes or rights of action each one may have against the other involving the said property." [10] Under the terms of the compromise agreement, petitioner Salvador would pay one half of the purchase price on or before September 26, 1996, and the other half thirty (30) days after, or on or before October 26, 1996. Petitioner Salvador failed to comply with these obligations, since payment was tendered only on October 28, 1996, two days late from the deadline. On October 14, 1996, petitioner Salvador informed respondent Ortoll that his application for a loan of P11,300,000.00 had been approved by th